PURC announces 30 percent reduction in electricity tariffs

The PURC has announced a 10-30 percent reduction in prices of electricity effective March 15 2018.

A statement issued on Monday and signed by the Executive Secretary of PURC, Mami Dufie Ofori, said the reductions are based on the PURC’s Gazetted 2015 tariffs and are only based on energy charges.

However, “maximum demand and service charges remain the same as that of the 2015 gazzeted tariffs,” the statement said.

Per the statement, residential customers will now enjoy 17.5% reduction, whilst non-residential customers will enjoy 30% reduction. The mines are also entitled to 10% reduction, with special load tariff customers also enjoying 25% reduction.

The reduction comes after a comprehensive meeting held between the PURC and the stakeholders.

Announcing the considerations that went into the tariff reduction, the PURC said a renegotiation of the Power Purchase Agreements, prudent and efficient cost of operations of Utility companies as well as consumer and investor interests led to the reductions.

The regulator hopes the reductions will engender an efficient and equitable tariff regime and to ensure that the tariffs are relevant to the current socio-economic environment.

The government in its 2018 budget read last year hinted of a reduction in electricity tariffs.

Addressing the national association of beauticians and hairdressers in January, president Nana Akufo-Addo reiterated government’s commitment to reduce the tariffs.

He announced a 14% reduction in electricity tariffs for members of the association.

However, the Minority in Parliament and some experts descended heavily on the president and the government, accusing them of usurping the powers of the PURC.

The Minority described the president’s announcement as populist.

However, after an extensive consultation with the stakeholders in the electricity sector, the PURC has decided to review the tariffs downwards.